Sources close to Microsoft are now stating that the company
is expected to extend the
availability of Windows XP specifically for low-cost notebooks (i.e., Eee
PC, CloudBook, etc.). Although Microsoft declined to comment on the report, the
sources said that the announcement could come as early as this week during the
Intel Developer Forum (IDF) which is taking place in Shanghai.

An announcement at IDF would make perfect sense as the show
is a showcase for Mobile Internet Devices (MIDs) and notebooks using Intel's
new Atom processors. Intel's Atom processors are targeted at MIDs,
sub-notebooks and even low-end desktop machines.

Already on display at IDF are a number of Atom-based
sub-notebooks from a little-known company, Thinno. Thinno displayed two
notebooks -- one of which appears to have a 7" screen, while the other
looks like an 8.9" unit -- at the show. The former was running Windows XP
while the latter is said to be running Red Hat Linux.